European aggregates production: Drivers,correlations and trends

Aggregates constitute the biggest branch of mining by production volume and the second in value, after the sector of fossil fuels. Their close connection with the construction industry places them among the most used materials worldwide, second only to water. Despite its significance, the sector suffers from the non-systematic register of production data, resulting in weakness to study the main features affecting the sector’s structure and future capacity. The paper focuses on the aggregates production in 26 European countries. Data from available sources are gathered and combined for a 10-year period (1997–2006), as an effort to provide a clear view of the major attributes of this vital industrial sector. Through a thorough analysis, the main drivers in aggregates production are revealed and existing correlations and trends are identified. New findings are also presented, for example the significance of GDP from construction and the strong connection of aggregates production per capita with the residential building sector.     

Climate policies and skill-biased employment dynamics: Evidence from EU countries

The political acceptability of climate policies is undermined by job-killing arguments, especially for the least-skilled workers. However, evidence of the distributional impacts for different workers remains scant. We examine the associations between climate policies, proxied by energy prices, and workforce skills for 14 European countries and 15 industrial sectors over the period 1995–2011. Using a shift-share instrumental variable estimator and controlling for the influence of automation and globalization, we find that climate policies have been skill biased against manual workers and have favoured technicians. The long-term change in energy prices accounted for between 9.2% and 17.5% (resp. 4.2% and 8.0%) of the increase (resp. decrease) in the share of technicians (resp. manual workers).     

Long-term impacts of exposure to high temperatures on human capital and economic productivity

Weather anomalies have a range of adverse contemporaneous impacts on health and socio-economic outcomes. This paper tests if temperature anomalies around the time of birth can have long-term impacts on individuals' economic productivity. Using unique data sets on historical weather and earnings, place and date of birth of all 1.5 million formal employees in Ecuador, we find that individuals who have experienced in-utero temperatures that are 1 °C above average are less educated and earn about 0.7% less as adults. Results are robust to alternative specifications and falsification tests and suggest that warming may have already caused adverse long-term economic impacts.     

Price perceptions in water demand

Economists advocate for using the price mechanism to manage water scarcity, but complex nonlinear rate structures prevalent in markets for municipal water obscure price signals. We conduct a randomized field experiment that jointly elicits knowledge about the cost of water and examines the impact of improved information on demand by linking a survey to water billing records. Half of our sample of 30,000 single family homeowners are randomly sent an invitation to a survey that asks questions about the water bill and the costs of water-use activities (e.g. the cost of taking a shower), and subsequently provides personalized accurate information. Results show that consumers have poor information about the marginal price of water and overestimate the costs of using water. Respondents are relatively better informed about their total bill and water consumption. In aggregate, respondents increase water use in response to the survey, potentially due to learning that water is cheaper than they previously thought. Increased consumption is concentrated among low users who are more likely to over-estimate the costs of using water.     

Determinants of foreign direct investment in the mining sector in Asia: A comparison between China and India

The aim of this paper is to assess the conditions that influence foreign direct investment in the mineral industries of China and India. The paper first surveys literature on the determinants of foreign direct investment to identify key conditions, under which host countries attract mining FDI. It then builds an evaluative framework which allows for comparative analysis. The paper then comparatively evaluates the performance of foreign investment regimes that govern mineral industries in China and India. Its findings show that the overall conditions for foreign mining investment in China and India are not favourable and that substantial policy, regulatory and other changes in both countries need to be made if more investment is to flow.     

Farmer models of socio-ecologic systems: Application of causal mapping across multiple locations

Modelling ecological or environmental problems has potential to provide understanding of the causes of such problems and to indicate how to better manage them. Özesmi and Özesmi (2004) showed that cognitive or causal mapping can be used to develop maps of socio-ecological systems but these maps were based on stakeholders concerned with one ecosystem. This article shows how maps from a number of different dairy farmers in different locations, but each considering his or her own farm, can be used in meta analysis to make maps that represent how farmers think their farm ecosystem works. It also shows that the combination of causal mapping with the additional technique of Q method provides a useful solution to the practical problem of selecting from a sufficiently broad range of factors with potential to use in a map. Causal mapping in single or multiple locations contributes to the goal of using peoples’ knowledge of ecosystems to improve our understanding of socio-ecological systems.     

Capitalizing on energy supply: Western China's opportunity for development

Two kinds of disparities pervade China and threaten its well-being. The first, regional disparities focus on levels of economic development, which vary considerably across China. The second is largely a corollary of the first, referring to mismatch in energy supply and demand, with some places suffering severe shortages while others are blessed with significant surpluses. Western China enjoys the dubious distinction of recording the country's lowest levels of economic development while, paradoxically, being blessed with plentiful reserves of energy and non-energy minerals. Turning those surplus resources to good account through transferring them to minerals and energy-hungry Eastern China is seen by policy-makers as something of a panacea. Not only will such a strategy significantly boost Western China's economic prospects, but it will eliminate the resource shortages currently constraining the East's vibrant growth. The issues of regional disparities, energy mismatches and transfers of these resources are discussed, with attention given to both spatial and time perspectives. The paper concludes with a cautious endorsement of the policy initiatives that promote the strategy of mineral transfers.     

Uncertainty in exhaustible natural resource economics: The irreversible sunk costs of Hotelling

According to Pindyck (2007) there are three important aspects of uncertainly in environmental economics: (1) the benefits and costs of environmental policy tend to be highly non-linear, (2) environmental policy tends to involve important irreversibilities, where investment in pollution abatement can impose an irreversible, sunk cost on society, and where certain pollutants can stay in the environment forever and build up to cause even more future harm in which case investment in abatement can cause an irreversible, sunk benefit to society, and (3) environmental policy involves long time horizons and yet the discount rate society should use is uncertain for determining the net present value of costs and benefits of pollution abatement. These same uncertainties also affect non-renewable, exhaustible, natural resource economics and in particular the use of the Hotelling rule: (1) the costs, benefits and transversality conditions of using the Hotelling rule can be highly non-linear, (2) the Hotelling rule involves important sunk cost irreversibilities, which will be explained here, and (3) the Hotelling rule can involve long time horizons with uncertain discount rates. All three of these problem make it extremely difficult for a market to use in any way the Hotelling rule, yet by the sheer number of articles in non-renewable natural resource economics, one would believe that it is the basis of all resource markets. In this article, we concentrate on the sunk cost irreversibilities of using the Hotelling rule. The idea of the Hotelling rule is to optimally store a non-renewable resource, but the optimization is highly dependent on the actual reserves that are available to extract. However, reserves of underground exhaustible resources are often unobservable at the beginning stages of extraction which makes using the Hotelling Rule difficult.     

Rare earth elements as critical raw materials: Focus on international markets and future strategies

Supply of some critical raw materials by European industry is becoming more and more difficult. After the case of natural textile fibres, in particular cotton, and timber, over the last few years the problem of rare earths (REs) availability has also risen. The 97% of the global supply of rare earth metals (REMs) is produced by China, that has recently done copious cuts of its exports, apparently in order to protect its environment. This fact has greatly increased the REs prices, causing tension and uncertainty among the world hi-tech markets. Many of these materials, in fact, have very few effective substitutes and low recycling rates too. In addition, their natural reserves of rare earths are concentrated in a small number of countries (China, Brazil, US, Russia, Democratic Republic of Congo). REMs are a group of 17 elements particularly used in many new electronic and advanced components: such as fuel cells, mobile phones, displays, hi-capacity batteries, permanent magnets for wind power generation, green energy devices, etc. Many analysts foresee much more requests in the next decades.     

The fate of the poor in growing mineral and energy economies

There are frequent suggestions that countries specializing in mineral and energy extraction have a type of growth that is bad for the poor. Others claim that extraction-led growth is particularly good for the poor. Both claims are made without the support of substantial empirical evidence. This paper uses longitudinal data on income growth by quintile in 57 developed and developing countries to statistically assess how mineral and energy extraction has affected the relationship between growth and the poor. We can find no evidence that the data support either the claim that extraction-led growth is good for the poor or that extraction-led growth is bad for the poor. This finding does not rule out that extractive activity can have special positive or negative impacts on the poor in some countries or regions. Rather, it simply brings to light that such effects are not evident as a persistent statistical phenomenon in the national level data that are available, which may be why the debate tends to move along without resolution.